To: Honorable Mayor and Members of Town Council
From: Trish Muller, Finance Director
Title
Update: 2017 Mid-year Financial Review, Period Ending June 30, 2017
Body
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Executive Summary
Significant progress toward Town priorities has been accomplished through the first half of 2017. The following discussion and financial information reflects the overall positive financial condition of the Town and highlights the continued focus on strategic priorities established by Council. These priorities include:
• Ensuring outstanding public safety: Ongoing planning and design of the new Fire Station 152 is underway with construction planned to begin by the end of 2017. In addition, the Police Department has hired two additional officer positions previously approved as part of the 2017 Budget.
• Securing our water future: Castle Rock Water is working to provide high quality water service to customers, with a focus on the goal of bringing additional renewable water to the Town. Multiple projects are underway, including construction of additional groundwater wells, ongoing WISE partnership work and the acquisition of additional water rights and storage capacity.
• Enhancing our transportation: Design is underway on multiple growth related transportation projects, including the widening of Ridge Road, improvements at Crowfoot Valley Road and Founders Parkway and improvements at Allen Way and Founders Parkway. In addition, construction is underway on multiple street reconstruction projects and the annual Pavement Maintenance Program.
• Maintaining strong parks and recreation: The renovation of Festival Park is underway and is anticipated be complete by the end of the year
The financial information in this report also includes:
• Discussion and financial summaries by major category for each fund included in the Town’s financial information
• 2016 Audited Year-end numbers
• Incorporation of two Council approved budget amendments
• Preliminary year end estimates are included for 2017. These estimates will be updated in the third quarter.
The overall financial condition of the Town through the second quarter remains strong, as evidenced by the information that follows. The year to date budget represented in this report has been adjusted to reflect seasonal trends and one time items within funds in order to provide a more accurate reflection of Town financial trends for the first half of the year.
Total revenues for the Town are about 2% lower or almost $2 million less, than the budget for the first half of the year. This is related to timing of system development fee revenue that is related to development activity in the town and charges for service. Town wide expenditures are about 22% lower than budget, which is primarily due to the timing of capital expenditures and other projects.
While several factors contribute to the overall financial picture of the Town, below are other items of note through the second quarter of 2017:
• Net sales tax collections are higher by more than 11% when compared to the first half of 2016
• General Fund operational expenditures are about 8% lower than the amended budget through the second quarter
• Overall development activity remains steady in the town during the first half of the year. However, some variation may be found in some funds due to the type and square footage of actual development activity during the first quarter.
Staff also continues to monitor revenue trends concerning the Taxpayer Bill of Rights (TABOR) and will continue to evaluate significant revenue sources such as Sales Tax and update 2017 TABOR calculations accordingly.
Proposed Motion
This memo is intended to be for discussion purposes only.
Attachments
Attachment A: 2017 Second Quarter Financial Reports
Schedule A - General Fund
Schedule B - Transportation Fund
Schedule C - Parks and Recreation Capital Fund
Schedule D - Municipal Facilities Capital Fund
Schedule E - Fire Capital Fund
Schedule F - Police Capital Fund
Schedule G - Transportation Capital Projects Fund
Schedule H - General Long Term Planning Fund
Schedule I - Water Fund
Schedule J - Water Resources Fund
Schedule K - Stormwater Fund
Schedule L - Wastewater Fund
Schedule M - Golf Course Fund
Schedule N - Community Center Fund
Schedule O - Development Services Fund
Schedule P - Employee Benefits Fund
Schedule Q - Fleet Services Fund
Schedule R - Conservation Trust Fund
Schedule S - Philip S. Miller Trust Fund
Schedule T - Public Art Fund
Schedule U - Economic Development Fund
Schedule V - Police Forfeiture Fund
Schedule W - Downtown Development TIF Fund
Schedule X - Special Events Fund
Schedule Y - Townwide Summary
Attachment B: Second Quarter Sales Tax Collections by Category and Geographical Area
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